JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon announced that 15% of current Chase credit card users are going to have their accounts closed in a letter written to shareholders this week.
Dimon wrote that, “In light of new regulations,” which prevent credit card companies from offering low introductory rates and then moving them to much higher interest rates, “we deem them too risky.”
Specifically, Dimon wrote, ” In the future, we no longer will be offering credit cards to approximately 15% of the customers to whom we currently offer them. This is mostly because we deem them too risky in light of new regulations restricting our ability to make adjustments over time as the client’s risk profile changes.”
The letter also noted that, “we have substantially reduced very low introductory or promotional balance transfers. This change alone reduced our outstanding balances by $20 billion” and “We reduced limits on credit lines, and we canceled credit cards for customers who had not done business with us over an extended period.”
